Closing the Marketing Confidence Gap
The “Marketing Confidence Gap.” That’s Ogilvy parlance for that vexing and persistent chasm between, on the one hand, the high percentage of media time spent by the average consumer online and, on the other, the relatively low percentage of overall ad budgets being directed online. I believe OgilvyOne’s global CEO Brian Featherstonhaugh may have been the one to coin the phrase. The PowerPoint slide illustrating the gap, with one line up top, closing on 20% of consumer time spent with online media, and the other line, the south rim of the chasm, slowly squiggling northward toward double digits, is one of those slides that shows up regularly in internal presentations. I’ve put it in who knows how many presentations myself. Media spend, the logic goes, should be proportionally allocated to the media that consumers actually engage in, by time spent engaged since that’s a handy measure.
The other day a friend and former colleague of mine, who’s been asked to moderate a panel on this particular topic at a large upcoming conference, hit me up for some thoughts on the topic. It really got me thinking.
Last time I gave a presentation that included a slide on the marketing confidence gap was just before the Spring Festival holiday, I was asked by a colleague in PR to speak to a group of visiting university students from Syracuse in upstate New York. When I posed the question of why the gap persists to them–they’re all totally digitally savvy youngsters, like most college students in the States–one young man raised his hand and said that he couldn’t remember a single Internet ad, has never felt compelled to click on one, and pretty much hates Internet advertising in all its forms, while on the other hand he can remember loads of TV commercials. It’s the creative, he thought, that was the difference.
He’s right in part, of course, though I suggested (and do half believe!) that if a big brand spent anything close to the kind of cash on Internet campaigns that they do on TVCs, the concepts, the creative, would be every bit as compelling as the TV ads.
I didn’t share this little anecdote with my friend who had a panel to moderate, but it did inform my response to him, the gist of which follows. I wondered whether we’re simply not seeing an important piece to this. Is it as simple as we’ve suggested here–as simple as that ubiquitous slide would suggest? Or are those of us who long ago drank the digital Kool-Aid just blind to inherent limitations to the impact of brand messaging in Internet ads–limitations that brands instinctively recognize? We’re always prattling on about the importance of listening–of listening to the man in the street in this age of the empowered consumer. But are we listening closely enough to the people who actually control media budgets? It seems to me that they’re in a position to cut big checks to agencies to make TVCs because their brands have done something right–that their outdated, traditional approach to marketing has somehow worked.
Sure, the old CMOs are crusty analog types, and they’ll be replaced soon enough and that’s going to help the gap to close naturally, right? They grew up with TV, and were settled into their ways by the time the Internet–let along mobile–had really taken hold. Part of it’s simply generational inertia. And that’s quite natural: if you were to look back at the 1950s, and look at TV–back then, the disruptive new media–versus radio or newspaper ad spend, I’m sure you’d see a gap too, and find that it took a while for that gap to close. Surely there was a time when people were spending time glued to their sets, shifting attention away from newsprint and radio, but advertisers were still putting their money into what was then the tried and true.
So should we even be getting all worked up about the marketing confidence gap? Or is it something that’s going to close on its own anyway? Maybe we should all be spending more of our time doing the business of creating effective interactive campaigns rather than trying to will history to overcome inertia faster, and yammering on (or blogging on, in this case) about whose fault it is that the ball isn’t rolling any faster. Nah. Someone’s gotta do the yammering.
5 comments thus far
The confidence gap will be closed when ad agencies like Ogilvy stop preaching “360 Degree Brand Stewardship”, a model that supposed to be based upon consumer touchpoints but is in reality a way for the agency to divide up the client’s budget into little silos, giving unequal amounts to advertising, PR, online and retail, and thus keeping all its divisions afloat.
With some exceptions such as IT companies, traditional advertising by default will always get the biggest pie. And it will also lead the creative process, using creative folks who are generally clueless about non-traditional media. Let’s face it: there is so much crap Internet advertising because it’s the stuff that was adopted from a traditional media ad to a non-traditional space.
Traditional advertising is central to the advertising business. When have you ever sat through a media presentation that didn’t include traditional media to a client that could afford it? Yes, traditional media still works, but it’s also a windfall for the media agency.
In my years in the ad business I never saw an honest proposal that divided a campaign into realistic disruption points. For both the creative and media agencies, there’s simply too much to lose. Doing what’s right for the client is WPP career suicide.
There’s no coincidence that there are a lot of parallels drawn between the ad and music industries. Eventually our Waterloo will be upon us and we’ll have to change. Until then, we can continue to siphon off the client’s money on advertising that doesn’t work.
Posted by Bryce on February 15, 2008 at 8:07 pm
There is a problem with the marketing confidence gap analogy.
Yes, people spend a larger amount of their time online. But they do not go online to look at ads, they go to look for information or be entertained.
In the process, Internet visitors have effectively filtered out any attention to online ads _unless_ they go to a search engine to look for specific information, at which point they will look at text ads in the right-hand column. Search advertising works because it operates in a context people are willing to accept.
Posted by Paul Denlinger on February 15, 2008 at 11:30 pm
[...] is a question which Kaiser Kuo, publisher of Ogilvy China Digital Watch, asked in his article “Closing the Marketing Gap”. To quote from his article: The “Marketing Confidence Gap.” That’s Ogilvy parlance for that [...]
Posted by Advertising On The Three Screens and New Business Models for China | The China Vortex on February 16, 2008 at 10:36 pm
I think Paul is right. I pay attention to the adverts Google throws at me through Gmail because they’re revelant. And search is a context in which I’m open to experimenting with ancilliary services/links.
But blogs? I actually get irritated at the presence of adverts on personal sites because it seems grasping.
Posted by trevelyan on February 17, 2008 at 6:56 pm
It seems that Kaiser’s post, as well as Paul’s and Trevelyan’s comments, equate marketing on the Internet as advertising via banner ads. If limited to awareness, then yes, TVC’s and billboards will always do a better job at creating awareness, though I think Paul saying that netizens do not go online to look at ads is misleading…I do not watch TV in order to look at ads; I hate ads on TV (which is why Tivo is popular).
The opportunity for digital marketing is not necessarily limited to awareness. The real opportunity is that it provides a unique platform for brands to connect with consumers and participate in their world in meaningful ways. Pepsi recognized that music fans loved to support and create media around music stars and created a campaign that asked fans to come up with TVC ideas. The Pepsi Creative Challenge was the most discussed campaign in 2006 and lay the foundation for their success with Pepsi Creative Challenge II in 2007.
Moto saw that netizens loved Tuzki, the cartoon rabbit, so when they launched the Q phone, they used Tuzki as the “spokesperson” which meant Moto Q Tuzki became embedded in countless Tuzki avatars and other iterations and actually helped change the Q from being a “Blackberry Killer” (as it was positioned originally in the US) to being a cool, hip communication gadget for the Internet generation.
The real opportunity is for brands to be a part of the millions of conversations happening online. This doesn’t actually have to mean a bigger budget, but it does mean a different mindset, which as Bryce suggests, may be the biggest challenge of all.
Posted by Sam Flemming on February 19, 2008 at 12:00 pm
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